Tantrums, concubines, and hotpot burns: China insurers have it covered

Your child throws a tantrum and smashes something? Take out “naughty child insurance”. Similarly, buy cover against your bride becoming pregnant before the honeymoon, your team being knocked out of the soccer World Cup, burning your tongue eating hotpot or if smog ruins your holiday. Quirky, maybe, but China’s insurers are turning to ever more creative ways to drum up business in a market where growth has stalled and penetration rates of around 3 percent, half the global average, are little changed from a decade ago. While most of these policies are short-term promotions, they offer insight into daily concerns in the world’s most-populous nation - such as marriage and children.

It’s consumer acquisition, a way to engage new customers. It’s primarily marketing.

Joseph Ngai, head of Greater China financial institutions practice at McKinsey in Hong Kong

Ping An Insurance Group Co of China Ltd has offered a payout just to wives in the case of divorce, and another policy, akin to an investment plan, that paid out - after a certain period - if a couple stayed together. Last year, Ping An offered another policy incentivising couples to marry in the 10 days leading up to this year’s Nov. 11 “Singles Day”. The policies, which went on sale at midnight and included 12-month membership to an online matchmaking site, sold out in 10 minutes. Sino-Life Group Ltd, Sunshine Insurance Group and Anbang Insurance Group also sold married couples “concubine-proof”, “red rose” and “rich flower” insurance policies.

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